New Massachusetts Bill Seeks to Legalize Online Casinos, Ban Sweepstakes Gaming

A Limited, Regulated Market for iGaming

The bill proposes a tightly controlled structure for online casinos in the state. The framework would primarily tie online gaming licenses to Massachusetts’ three existing land-based casino properties: Encore Boston Harbor, MGM Springfield, and Plainridge Park.

Under the proposal, each of these casinos would be eligible to partner with multiple online brands, or “skins,” to offer their products to a statewide audience. The proposed tax rate on iGaming revenue is set at either 15% or 20%, depending on the final version of the bill.

A significant portion of the legislation is dedicated to consumer protection, reflecting lessons learned from the state’s recent launch of sports betting. The bill includes several key guardrails:

• A strict 21-and-over age requirement for all players.
• A prohibition on the use of credit cards for deposits.
• A $20,000 limit on total deposits within any 24-hour period.
• A mandate for operators to use AI-powered tools to detect at-risk gambling behavior.
• The creation of a “Player Health Program” funded by tax revenue to support problem gambling prevention and treatment.

The bill also includes marketing restrictions, banning “risk-free” advertising and the use of influencers who appeal to an under-21 audience.

A Crackdown on Sweepstakes Casinos

While the bill opens the door for regulated iGaming, it slams it shut on sweepstakes casinos. The legislation includes a clear and explicit ban on “online sweepstakes games,” which it defines as any game that uses a dual-currency system and simulates casino-style games or sports betting.

The proposal includes significant penalties for non-compliance. Anyone caught operating, promoting, or facilitating a sweepstakes casino could face fines ranging from $10,000 to $100,000 and the potential loss of any existing gaming licenses. Repeat offenders could face up to two years in prison.

An Uphill Battle in the Legislature

Despite its detailed framework, H.4431 faces a difficult path to becoming law. The bill has been referred to a House committee, but several significant obstacles stand in its way.

The state is already planning to launch an online lottery in 2026, creating a powerful stakeholder that is unlikely to welcome new competition. Furthermore, there are lingering concerns among lawmakers about responsible gaming following the recent legalization of sports betting, which could make them hesitant to approve another major gambling expansion so soon.

Finally, the bill’s political prospects are challenging. It was introduced by a Republican lawmaker in a legislature where Democrats hold a supermajority, making it an uphill climb to build the necessary consensus for passage.